It depends.
You can start with the TurboTax free version and if you need to upgrade, you will be prompted by TurboTax (all you information will transfer if you upgrade to a new version).
Concerning your UK inheritance, you will not need to report this UK
inheritance on your US income tax return. Inherited money is not considered
taxable income and is not reported on your tax return or to the IRS
Additionally, you may have several other filing
requirements related to this UK Inheritance.
-
Form 8938 - Statement of
Specified Foreign Financial Assets may need to be attached to your US
income tax return (depending on your filing status). This form is available with TurboTax Deluxe or higher.
-
Form 3520 - If you receive a gift or
inheritance from a foreign person (nonresident alien) or from a foreign
estate and the total amount during the year exceeds $100,000, you are
required to report the gift on Form 3520. (This form is not supported in
TurboTax). Please refer to this IRS link for more information on Form 3520
- Please note
that you may need to file an FBAR if the money was held in a foreign bank account under
your name or if you had signature authority over a foreign account.
If you have foreign bank accounts, you may be required to file a
Report of Foreign Bank and Financial Accounts (FBAR) if are a US citizen
or resident and:
- you had a
financial interest in or signature authority over at least one financial
account located outside of the United States; and
-
the aggregate value of all
foreign financial accounts exceeded $10,000 at any time during the
calendar year reported.
To be directed to the US Treasury Government Website to prepare a
Report of Foreign Bank and Financial Accounts, click FBAR (TurboTax does not support
this form).
Here is a link to
the IRS related to both the FBAR filing and the Form 8938 filing: IRS
- Comparison of Form 8938 and FBAR Requirements
